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Dear Tutors,
Following the example in lecture (Chapter 6 – lecture 8), where Gain/Loss on Exchange on translation of “Ivy” works out to be loss of 28.6M, I would like to understand firstly whether this OCI item is under the Group OCI account or Parent’s individual OCI account only?
Secondly, this 28.6M includes the loss in the net assets due to exchange rate difference, and 20% of these net assets (500M dinars) belong to NCI. Yet, this same 28.6M includes the loss in Goodwill value but only attributable to the Parent “Holly” due to the use of proportionate approach. As we only need to disclose the PAT attributable to NCI under Group SPL, but not OCI attributable to NCI, in the case of disposal of “Ivy”, where we reclassify the accumulated gain/loss to SPL, do we need to then split out which of this gain/loss belong to the Parent and NCI respectively?
Thanks in advance for your guidance!
Regards,
TimHi Sir,
Thanks but am still a bit confused why the recycling is of gain attributable to NCI only.
So following the example, the exchange loss of $28.6M is reported under Group OCI. Assuming no further exchange gain / loss, if the subsidiary gets sold , then we would debit this 28.6M to SPL under the Recycling concept. However, this 28.6M is not fully attributable to the Parent (as it only has 80% share). So should we not recycle only the Parent’s portion of the 28.6M to SPL?
Thanks again in advance!
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